Dip in yarn exports should be seen as a good sign for India: Goyal
At the event, Gujarat Chief Minister Bhupendra Patel launched indiahandmade.com — an e-commerce portal for Indian handicraft products — in the presence of Goyal and Minister of State for Railways and Textile Darshana Jardosh.
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Union Textiles Minister Piyush Goyal Decreasing yarn exports from India should be seen as a good sign for the country as that would make raw materials available for processing them into textiles and eventually, into garments creating jobs and opportunities in the sector, said Union Textiles Minister Piyush Goyal Saturday.
“The Indian demand for yarn and for finished products are growing significantly, both in the domestic and export markets. If producers get better value in the Indian market, they would prefer to sell the yarn in India. It should be processed right up to the garment and that value addition is good for India. Whenever possible, we encourage that more finished goods get exported from India. There is value addition that will create jobs, which will give opportunities to our entrepreneurs, to our start-ups. If at all the yarn export reduces, it’s a good sign,” said Goyal, adding, “The rise in readymade garments and finished value-added products is really the strength of India that we want to encash.”
Goyal was in Rajkot to address the two-day textile conclave organised by the Central government as part of the ongoing Saurashtra Tamil Sangamam (STS) that was attended by industry stakeholders from Tamil Nadu and Gujarat. “Our handicraft and handlooms are also showing good traction both in India and internationally,” the Minister said, adding, “I am sure, we will receive full support of the states in our efforts to achieve a USD-100 billion target for exports and overall value production of USD 250 billion in the textile sector by 2030.”
Goyal said that a Production-Linked Incentive (PLI) scheme for the textiles sector will be finalised soon. “We had extensive discussion, both within the government and extensive stakeholder consultation. Eventually, (at) the chintan shivir that we have had in Rajkot, I exchanged ideas and views about how we can expand, promote and support the industry to grow further,” said Goyal.
India is the largest cotton producer of the world and the country exports cotton as well as cotton yarn in big quantities including to China, Bangladesh and Vietnam. Bangladesh has emerged as India’s competitor in the global textile market and Goyal said that the Indian government is working on signing Free Trade Agreements (FTAs) with countries to keep the Indian exports competitive.
“As we grew and as our country moved from less developed country to developing country, our per capita income increased, we lost the benefit of duty-free export in many developed countries and our products started attracting duties in those countries. Compared to that, our neighbouring countries like Bangladesh, continue to be less developed countries. So, they have access to those developed markets duty-free. Therefore, we are at a disadvantage. Prime Minister Narendra Modi, recognising this as a serious concern, initiated the process of having FTAs with developed countries,” Goyal said, citing trade deals with Australia and the UAE signed last year.
“Similarly, dialogue is in the advanced stages with Canada and with the United Kingdom. We are also in negotiation with the 27-nation European Union,” said Goyal, adding talks were on with other countries as well. In less than two years, our exports have grown from USD 500 billion in 2021 to USD 770 billion — a growth of nearly 55 per cent, the Commerce and Industry Minister said.
He said textile exports account for 10 per cent of India’s merchandise exports and after agriculture, is the largest employment provider in the country.
At the event, Gujarat Chief Minister Bhupendra Patel launched indiahandmade.com — an e-commerce portal for Indian handicraft products — in the presence of Goyal and Minister of State for Railways and Textile Darshana Jardosh.
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